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CNN Live Today

Update On Arafat's Condition; Coalition Forces Keep Pressure on Falluja; Deliberations Continue in the Peterson Murder Trial

Aired November 05, 2004 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


RICK SANCHEZ, CNN ANCHOR: We're going to be watching a lot of news today, obviously everything going on with Mr. Arafat. And any rumblings of things that take place in Falluja, we'll take you there as well.
DARYN KAGAN, CNN ANCHOR: How about right now we'll take a look at what's happening now in the news?

SANCHEZ: We begin with PLO leader Yasser Arafat still in a coma, reportedly on life support. And this morning tensions are rising over his possible burial site and the future of the Palestinian leadership. Live reports from Paris, Jerusalem and the White House begin in one minute.

Tests are still being performed on Elizabeth Edwards, wife of former Democratic vice presidential candidate John Edwards, since she was diagnosed with breast cancer. Edwards learned of her condition just hours after Wednesday's concession speech. A spokesperson says the tests will determine how far the cancer has advanced and how to treat it.

Today is the third day in the Scott Peterson double murder trial; jury deliberations are certainly ongoing. The judge has banned live television coverage when the verdict is announced. But the public will be allowed to hear the jury's decision. Hear not see, the key word there. Peterson is accused of killing his wife and unborn son. Stay with us for a live report from outside the courtroom. It's coming up in our next half hour.

And the economy created, as you may have heard, 337,000 new jobs last month. Today's new Labor Department report nearly doubled Wall Street's expectations. Jobs grew in every sector except manufacturing, with construction getting a big boost from that string of hurricanes that hit Florida and much of the southeast.

And good morning once again, everyone. I'm Rick Sanchez.

KAGAN: And I'm Daryn Kagan. We begin with the failing health of Yasser Arafat and the Palestinian leadership in limbo. Two U.S. administration officials telling CNN that Arafat is being kept alive with machines, while the grim issue of his burial sparks international negotiations. In death, the Palestinian leader could, in effect, be a man without a country.

First now a medical update. And for that, we go to Fionnuala Sweeney who is outside the Paris hospital where Arafat remains in a coma -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Daryn, there has been no official word from the hospital today as to the condition of Yasser Arafat. Leila Shahid, who is the Palestinian envoy to Paris, did say earlier that the 75-year-old Palestinian authority president hovers, quote, "between life and death."

She denied reports that he is on a life support machine. She said his bodily functions were operating normally and that the theory seems to be that he's in and out of consciousness. He's not totally in a coma. She did say that he had entered some kind of a coma at some point over the last 24 hours. But in her words, "This was reversible."

It's very hard to gauge exactly what is going on in the walls of the hospital here behind me, because of the dearth of information coming from hospital officials. You may recall that yesterday afternoon, around this time yesterday, a French military hospital official said only that Yasser Arafat was not dead. And that was specifically to deny reports in the French media and the Israeli media that the 75-year-old Palestinian Authority president has died -- Daryn.

KAGAN: And any word on when we might get an update. As you were pointing out, the information has been very sketchy and intermittent.

SWEENEY: Well, actually we were hoping that were would be a news conference taking place literally behind me right now at 4:00 local time. But that hasn't taken place. And I think this is sort of settling into a routine now here over the past few days at this hospital, that news conferences are set for certain times. They don't take place.

And then, it's interesting to see who actually comes out to the microphone, whether it is Leila Shahid who is in a sense a diplomat, or whether it's one of the French military officials.

So, we're still waiting here for a news conference. But you know, it could happen at any time -- Daryn.

KAGAN: All right. And you'll be standing by. Fionnuala Sweeney in Paris.

SANCHEZ: Well, let's talk about the issue of his burial. CNN's Guy Raz -- pardon me, is in Jerusalem. The epicenter of the debate and we should also mention, the place where Arafat has said he wants to be buried.

Guy, what's the situation there?

GUY RAZ, CNN CORRESPONDENT: Rick, as Yasser Arafat's condition continues to deteriorate, the grim task of negotiating his potential burial site is now under way. We understand that Israeli, Egyptian and French officials in Paris are discussing this very issue as we speak. Now, Yasser Arafat's family and most Palestinians would like to see him buried in east Jerusalem, preferably near the Al-Aqsa Mosque, the site holy to Muslims around the world.

But Israeli Prime Minister Ariel Sharon has categorically ruled out the possibility that Yasser Arafat will be allowed to be buried in Jerusalem. The Israeli government is proposing an alternative site in Gaza, a place where Mr. Arafat's father and sister are buried. But Palestinian officials are rejecting that possibility, so clearly a very explosive, a potentially explosive issue in the coming days.

For most Palestinians, Jerusalem and Yasser Arafat symbolize their struggle for self-determination. But the Israeli government insists that all of Jerusalem, both the western side of the city and the eastern side, which it occupied in 1967, fall under Israeli sovereignty. And the Israeli government is insisting it will determine who is allowed to be buried in any part of the city -- Rick.

SANCHEZ: Is there another place, Guy, you know the region, that could possibly appease the Palestinians, and yet would not be within the confines of Jerusalem? In other words, is there a Plan B?

RAZ: There really isn't a Plan B. I mean there has been discussion of possibly burying Mr. Arafat in Abu Dis. That's a suburb just outside of east Jerusalem. It overlooks the city of Jerusalem. But Yasser Arafat has long said he wants to be buried in Jerusalem. He comes from a very old Jerusalem family, the al Husseini clan.

And though there are conflicting reports over where exactly he was born, whether he was born Cairo or Jerusalem, Jerusalem is really symbolizes to Yasser Arafat and to most Palestinians, the future capital of a Palestinian state. So, Jerusalem, key; very important place for any potential, future burial site for Mr. Arafat.

SANCHEZ: No doubt a sticking point here. Guy Raz, thanks so much for bringing us up to date on this. We'll be checking back with you -- Daryn.

KAGAN: Well, Arafat's death would ripple far beyond the region. Who will lead? Who will follow? And who will represent the Palestinian cause? All the answers will be felt at the White House.

And that's where we find our Suzanne Malveaux.

Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn. Senior administration officials continue to get updates from the French on Arafat's condition. They say that they have been told he is on life support, being kept alive by machines.

Now, we are told that the primary concern of the administration is two-fold. First, the potential of violence erupting in the region. And second, that possible power vacuum of having such a powerful symbol, the absence of such a powerful symbol in the near future.

Now, what is happening so far is that this, of course, has brought to the spotlight once again, the Middle East peace process, the importance of all of it. Recently, the Bush administration has come under some criticism for not being engaged enough. It was just yesterday that President Bush addressed that criticism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: I think it is very important for our friends, the Israelis, to have a peaceful Palestinian state living on their border. It is very important for the Palestinian people to have a peaceful, hopeful future. That's why I articulated a two-state vision in that Rose Garden speech. I meant it when I said it. And I mean it now.

(END VIDEO CLIP)

MALVEAUX: Now, of course, it's no secret that the Bush administration has not been dealing with Yasser Arafat for at least the last couple of years. It was just last year at a press conference, that President Bush met with Jordan's King Abdullah, saying that he felt that he was an impediment to the peace process.

That he was sabotaging it for actually not cracking down on Palestinian militant groups. This, of course, the Bush administration maintains that perhaps there is an opportunity there waiting for Palestinians to see what kind of leadership will emerge.

Now, President Bush is spending a long weekend at Camp David. That is where we are told that he is going to look over some of the changes among his staff, cabinet members for a second term -- Daryn.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

SANCHEZ: All right. Let's look at the situation in Iraq now. At least six members of the coalition forces lost their lives in Iraq. In the past 24 hours, two Marines with the First Expeditionary Force were killed in fighting yesterday. This is in western Iraq. Four others were wounded, we understand.

North of Baghdad, a soldier with the First Infantry was killed by a roadside bomb. Officials say it happened as a military convoy passed right through the town of Balad late last night.

And now, south of Baghdad, three British troops with the 850 Black Watch Regiment were killed yesterday by a suicide bomber at a checkpoint. British officials say a civilian translator also died in that attack.

KAGAN: Elsewhere in the Middle East, the fight for Iraq appears ready to erupt on a new front. U.S. forces are outside the insurgent stronghold of Falluja, apparently mobilizing for an all-out offensive on the city.

Our Karl Penhaul is embedded with the Marines near Falluja.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey Doc, make sure you hang out behind me a little bit so I can give you some cover. KARL PENHAUL, CNN CORRESPONDENT (voice-over): Getting ready to storm out of the desert and into an urban jungle. An assault on Falluja promises to be a close quarters, street fight. Marine infantrymen and tanks will have to work in harmony against rebel fighters in buildings and hidden allies.

SGT. MICHAEL CHAMBERS, U.S. MARINE CORPS.: That's what's kind of scary. You're rolling right by, thinking it is secured. And then they pop off that rooftop behind you and then here comes an RPG.

PENHAUL: Remote controlled explosives and suicide car bombs are likely to be major threats.

(on camera): The history books recall how some of the world's most powerful armies became bogged down in urban, guerrilla warfare, Hue City, Vietnam, Mogadishu, Somalia, Grozny, Chechnya.

CAPT. TOM TENNENT, U.S. MARINE CORPS.: Urban warfare is a dirty business. The defender initially has the advantage because he knows the terrain much better than the attacker. If the defender is able to use a defense to his advantage, the attacker will be slowed and have to reorient his offense.

PENHAUL (voice-over): When the Marines roll in, insurgent gunmen could be lurking in any window or doorway. Armored vehicles and tanks will become magnets for attacks.

SGT. JOSE DUCASSE, U.S. MARINE CORPS.: We're going to be looking for RPG fire from the rooftops and intersections and stuff like that. Make sure we don't hit any tank mine.

UNIDENTIFIED MALE: Charge three!

PENHAUL: Mortar crews run through drills.

UNIDENTIFIED MALE: Elevation!

UNIDENTIFIED MALE: Elevation.

PENHAUL: Inside the city they could, if needed, lob chargers over buildings or onto rooftops to destroy concealed insurgent positions. This explosives team is measuring out detonation cord. Depending on how they tie the knots, they could blow out doors and race in to clear, potential insurgent hideouts.

Intelligence suggests that Falluja's defenders may have rigged buildings with homemade bombs.

LNC. CPL. WILLIAM SABIN, U.S. MARINE CORPS.: Will it cause us to maybe slow down our attack a little bit, because we have to take into account all these kind of obstacles as far as booby-traps? Yes. But will it cause us not to be able to complete the mission? Absolutely not.

PENHAUL: U.S. commanders say the keys to victory in Falluja are moving fast, and coordinating their weapons on the ground and in the air. A battlefield where Marine and machine works as one.

Karl Penhaul, CNN, near Falluja.

(END VIDEOTAPE)

SANCHEZ: Yes. We should point out, we don't know exactly when this offensive will take place. We here at CNN will be monitoring it. We'll report a take you there with Karl Penhaul when we can.

KAGAN: Yes. Meanwhile, there are a lot of things that are difficult to do in the dark. And one National Guard fighter pilot found out the hard way.

SANCHEZ: Still to come, talk about missing the mark. How a school gets caught in the line of fire during a nighttime practice mission.

KAGAN: Plus, three days of deliberations, the jury remains busy and so is the judge. We'll have the latest in the Scott Peterson trial.

SANCHEZ: And Early gifts this season. No, that's not Santa and he sure isn't spreading any holiday cheer.

We'll explain these stories and more when CNN live rolls your way.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back to CNN LIVE TODAY. I'm Rick Sanchez.

At the top of the hour, jurors are to begin their third day of deliberations in the Scott Peterson murder trial. Both the defense and the prosecution joined forces for one argument that will ultimately, they say, win. There will be no live video of the coverage. It is what the jury -- or pardon me, the judge has ruled.

CNN's Ted Rowland has the very latest from Redwood City, California.

(BEGIN VIDEOTAPE)

TED ROWLAND, CNN CORRESPONDENT (voice-over): The jury of six men and six women, deliberating now for a day and a half, is deciding the fate of Scott Peterson in sequestration; away from their homes and families until they can reach a verdict.

In closing arguments lead prosecutor Rick Distaso told the jury that the case is like a puzzle. And when all the circumstantial evidence is pieced together, the picture is very clear, that Scott Peterson planned and carried out the murder of his pregnant wife. Distaso told the jury that the fact that the remains of both Laci Peterson and her unborn son were found in the same place that Scott Peterson was fishing, was evidence enough to convict him of first- degree murder. Defense attorney Mark Geragos in his close told the jury that prosecutors didn't prove anything, except that Scott Peterson is a liar. Despite defense objections, Judge Al Delucchi instructed the jury to also consider second-degree murder, which because there are two victims, would most likely carry a sentence of 30 years to life.

JUDGE ALFRED DELUCCHI, SAN MATEO COUNTY: Murder in the second degree is the unlawful killing of a human being with malice aforethought, when the perpetrator intended unlawfully to kill a human being, but the evidence is insufficient to prove premeditation and deliberation.

ROWLAND: Judge Delucchi denied a media request for a camera in the courtroom for the verdict, saying that emotions are running very high. And he did not want to be part of broadcasting any sort of, quote, "family meltdown."

(on camera): While there is no indication of how long jurors will take, the judge in the case has indicated he believes they'll be out at least a week. Late in the day, we did learn that the jury did request to see some evidence, specifically photographs. We also know that the foreman in this case is Juror No. 5, who has a law degree and a degree in medicine.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

KAGAN: And now a look at other "Legal Briefs."

A California judge has dealt setback to Michael Jackson in the child molestation case against him. A judge yesterday rejected a defense request to remove the lead prosecutor from the case. Jackson's attorney says that District Attorney Tom Sneddon is motivated by a personal vendetta against the singer. The judge says there's no conflict that would require Sneddon's removal.

Opening statements are to begin next hour in the sexual assault trial of former NBA star Calvin Murphy. The Hall of Fame basketball player and television commentator is accused of molesting five of his daughters when they were children between the ages of 1988 and '91. The former Houston Rockets star says he's the victim of a family dispute over money.

SANCHEZ: You know, oftentimes, adults harp on some of the negative actions of a lot kids, teenagers, for example. We've got a story about some youngsters that's sure to warm your hearts.

KAGAN: Still to come, one popular high school football player helps turn the limelight on one of his classmates.

SANCHEZ: First though, Gerri Willis with some tips to help you start your own business.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, guys. Are you tired of your bosses and corporate culture? We'll tell you the best way to buy a business when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

SANCHEZ: We had told you that we would be taking you to Falluja to get the very latest on the situation there. Our Karl Penhaul has gotten an opportunity to join us now. He's there on the scene.

Karl, what can you share with us at this point?

PENHAUL: Well, Rick, every day that we've been here one must say that the preparations have been increasing. The U.S. Marines have been ratcheting up those preparations when the order to stage an all- out assault on the rebel-held city of Falluja comes through. I say when, because all the U.S. Marine commanders here are talking of when. Nobody is talking of if.

Now, in the course of the day, we've seen Iraqi soldiers from the new Iraqi army arriving on a camp in the desert near Falluja. They've been training alongside U.S. Marines because large elements of the new Iraqi army will be fighting in Falluja alongside the Marines.

We've also been hearing a little bit more from intelligence sources, from military intelligence sources, about the type of threat that Falluja poses. Now, obviously this will be an urban warfare scenario. And so, what the military and intelligence experts are saying is that the biggest threat will come from improvised explosive devices. Those could be roadside bombs buried under pavements, buried into walls. The military is expecting car bombs. They're expecting suicide car bombs.

They even believe that some of the buildings inside Falluja may be completely rigged with explosives. And that will present very grave dangers for the U.S. forces as they push in. It is really difficult terrain, to fight in an urban area. In fact, what the Marines are saying is this is going to be their biggest battle and the biggest urban battle since Hue City. That was during the Tet Offensive in Vietnam in 1968 -- Rick.

SANCHEZ: Could you, Karl, and I know we have to be very sensitive to what the military is doing there, but could you give us a general sense of what this insurgency is in that specific area?

PENHAUL: According to U.S. military intelligence sources, latest information suggests possibly 3,000 hard-core insurgents fighters are holed up in Falluja. When the military says hard-core insurgent fighters, those are expected to be the men that stand and fight, fight it out against the U.S. Marines.

They also suspect, though, that there are other members of the civilian population inside of Falluja who do carry arms, and could join the insurgents. When however, they see the speed and ferocity of the Marine attack, then they expect some of those civilians simply lay down their weapons. They expect that the real hard-core fight will come with a group of around 3,000 fighters. I have seen estimates since we've been here, though, suggesting that up to 5,000 insurgent fighters could be holed up in Falluja. Also if you wreck that they've had probably six months now to prepare defenses in the city. Because the last time the Marines tried and offensive on Falluja, that was in April and May, a number of political wranglings and fear of mounting civilian casualties called a truce to that offensive. And eventually the Marines had to pull out -- Rick.

SANCHEZ: This really does sound, just from your own characterization and those that we've seen here and followed monitored at CNN, like it's going to be very different from what we've seen before in Iraq. You are in a unique position with these soldiers. Can you give us a sense of the mood among our troops there as they go into this situation?

PENHAUL: We've seen the mood here fluctuate. Fluctuate because on the one hand there's a lot of young men here, young men who are keen to do their jobs. They all have got very different reasons for being in the Marines, patriotism; the wish to serve their country may indeed be one of those motives.

Above all, here on the ground when they go into this kind of fight, they'll be looking out for one another. And within the platoon, within the companies, this is a very close-knit band of brothers. And they're keen to get this job done and get it done right.

We've also seen some of those spirits dropping because last weekend, eight Marines were killed in a suicide car bomb attack. And in the course of the week, we saw a very moving memorial service for those men. Obviously, these young men when they see that kind of memorial service, when they see their buddies dying, it does bring them face to face with their own mortality.

And possibly for the first time in their life, they do realize that they are not invincible. They realize and their commanders realize that their fight for Falluja could come with some certainly very high casualties -- Rick.

SANCHEZ: We've also been hearing that some of them have been itching to do this for quite some time. Do you sense in them a sense of urgency, almost as if they've been fighting to get this done?

PENHAUL: A sense of urgency I would agree with, because they know these Marines know that the fight for Falluja is a key fight. Many of these Marines may not fully understand the political ins and outs of Iraq. What they do understand and what they're been thoroughly briefed on is that if the problems in Falluja can be solved; if the resistance for Falluja can be crushed, then that will level the playing field. And could, if all goes well, open the gates towards January elections for all Iraqis.

And so, these Marines are very conscious of that. But they also don't like hanging around too long. They feel that they're ready to go. They don't want to be sitting back here in anticipation. The moment they believe is coming. They want to get the job on. And in the words of one of the commanders, what he was saying to us is that a lot of these Marines are going to be drinking Red Bull, that caffeine laced drink so that they can fight for days at a time. He said, "We're going to drink Red Bull. We're going to fight for days at a time." And in his words, "We're going to kick the insurgents' ass."

And so, there's a keen spirit here that they want to get that fight on -- Rick.

SANCHEZ: It's very direct quote there. Karl, before we let you go, give us, if you would, because we know this is the first of many reports that you may be filing in the days to come, what your role is going to be as an embed with these troops.

PENHAUL: Essentially, as with some of the other embeds what the military has said to us is that you're welcome to come along. There are no more or no fewer guarantees for us than there are for the Marines and the rest of the military. In many senses, the Marines will let us get as far forward as we feel comfortable with. And they seem to be quite happy to put us at what they're assuming at the tip of the spear. They will allow us to see the action as it unfolds.

They're also very well aware that this is an unpredictable urban type scenario and we could be out there filming all sorts of scenarios as they unfold -- Rick.

SANCHEZ: Karl Penhaul, stay safe my friend.

And we'll certainly be getting back to Karl Penhaul in what seems to be, at this point, an offensive in Falluja, that most are quoting as a situation where it is not a matter of if, but when.

KAGAN: But when.

We're also tracking what's happening out of Paris with Yasser Arafat and the situation there.

And we're following the markets. Much more business news and other things ahead. Stay with us.

(COMMERCIAL BREAK)

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Aired November 5, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: We're going to be watching a lot of news today, obviously everything going on with Mr. Arafat. And any rumblings of things that take place in Falluja, we'll take you there as well.
DARYN KAGAN, CNN ANCHOR: How about right now we'll take a look at what's happening now in the news?

SANCHEZ: We begin with PLO leader Yasser Arafat still in a coma, reportedly on life support. And this morning tensions are rising over his possible burial site and the future of the Palestinian leadership. Live reports from Paris, Jerusalem and the White House begin in one minute.

Tests are still being performed on Elizabeth Edwards, wife of former Democratic vice presidential candidate John Edwards, since she was diagnosed with breast cancer. Edwards learned of her condition just hours after Wednesday's concession speech. A spokesperson says the tests will determine how far the cancer has advanced and how to treat it.

Today is the third day in the Scott Peterson double murder trial; jury deliberations are certainly ongoing. The judge has banned live television coverage when the verdict is announced. But the public will be allowed to hear the jury's decision. Hear not see, the key word there. Peterson is accused of killing his wife and unborn son. Stay with us for a live report from outside the courtroom. It's coming up in our next half hour.

And the economy created, as you may have heard, 337,000 new jobs last month. Today's new Labor Department report nearly doubled Wall Street's expectations. Jobs grew in every sector except manufacturing, with construction getting a big boost from that string of hurricanes that hit Florida and much of the southeast.

And good morning once again, everyone. I'm Rick Sanchez.

KAGAN: And I'm Daryn Kagan. We begin with the failing health of Yasser Arafat and the Palestinian leadership in limbo. Two U.S. administration officials telling CNN that Arafat is being kept alive with machines, while the grim issue of his burial sparks international negotiations. In death, the Palestinian leader could, in effect, be a man without a country.

First now a medical update. And for that, we go to Fionnuala Sweeney who is outside the Paris hospital where Arafat remains in a coma -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Daryn, there has been no official word from the hospital today as to the condition of Yasser Arafat. Leila Shahid, who is the Palestinian envoy to Paris, did say earlier that the 75-year-old Palestinian authority president hovers, quote, "between life and death."

She denied reports that he is on a life support machine. She said his bodily functions were operating normally and that the theory seems to be that he's in and out of consciousness. He's not totally in a coma. She did say that he had entered some kind of a coma at some point over the last 24 hours. But in her words, "This was reversible."

It's very hard to gauge exactly what is going on in the walls of the hospital here behind me, because of the dearth of information coming from hospital officials. You may recall that yesterday afternoon, around this time yesterday, a French military hospital official said only that Yasser Arafat was not dead. And that was specifically to deny reports in the French media and the Israeli media that the 75-year-old Palestinian Authority president has died -- Daryn.

KAGAN: And any word on when we might get an update. As you were pointing out, the information has been very sketchy and intermittent.

SWEENEY: Well, actually we were hoping that were would be a news conference taking place literally behind me right now at 4:00 local time. But that hasn't taken place. And I think this is sort of settling into a routine now here over the past few days at this hospital, that news conferences are set for certain times. They don't take place.

And then, it's interesting to see who actually comes out to the microphone, whether it is Leila Shahid who is in a sense a diplomat, or whether it's one of the French military officials.

So, we're still waiting here for a news conference. But you know, it could happen at any time -- Daryn.

KAGAN: All right. And you'll be standing by. Fionnuala Sweeney in Paris.

SANCHEZ: Well, let's talk about the issue of his burial. CNN's Guy Raz -- pardon me, is in Jerusalem. The epicenter of the debate and we should also mention, the place where Arafat has said he wants to be buried.

Guy, what's the situation there?

GUY RAZ, CNN CORRESPONDENT: Rick, as Yasser Arafat's condition continues to deteriorate, the grim task of negotiating his potential burial site is now under way. We understand that Israeli, Egyptian and French officials in Paris are discussing this very issue as we speak. Now, Yasser Arafat's family and most Palestinians would like to see him buried in east Jerusalem, preferably near the Al-Aqsa Mosque, the site holy to Muslims around the world.

But Israeli Prime Minister Ariel Sharon has categorically ruled out the possibility that Yasser Arafat will be allowed to be buried in Jerusalem. The Israeli government is proposing an alternative site in Gaza, a place where Mr. Arafat's father and sister are buried. But Palestinian officials are rejecting that possibility, so clearly a very explosive, a potentially explosive issue in the coming days.

For most Palestinians, Jerusalem and Yasser Arafat symbolize their struggle for self-determination. But the Israeli government insists that all of Jerusalem, both the western side of the city and the eastern side, which it occupied in 1967, fall under Israeli sovereignty. And the Israeli government is insisting it will determine who is allowed to be buried in any part of the city -- Rick.

SANCHEZ: Is there another place, Guy, you know the region, that could possibly appease the Palestinians, and yet would not be within the confines of Jerusalem? In other words, is there a Plan B?

RAZ: There really isn't a Plan B. I mean there has been discussion of possibly burying Mr. Arafat in Abu Dis. That's a suburb just outside of east Jerusalem. It overlooks the city of Jerusalem. But Yasser Arafat has long said he wants to be buried in Jerusalem. He comes from a very old Jerusalem family, the al Husseini clan.

And though there are conflicting reports over where exactly he was born, whether he was born Cairo or Jerusalem, Jerusalem is really symbolizes to Yasser Arafat and to most Palestinians, the future capital of a Palestinian state. So, Jerusalem, key; very important place for any potential, future burial site for Mr. Arafat.

SANCHEZ: No doubt a sticking point here. Guy Raz, thanks so much for bringing us up to date on this. We'll be checking back with you -- Daryn.

KAGAN: Well, Arafat's death would ripple far beyond the region. Who will lead? Who will follow? And who will represent the Palestinian cause? All the answers will be felt at the White House.

And that's where we find our Suzanne Malveaux.

Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn. Senior administration officials continue to get updates from the French on Arafat's condition. They say that they have been told he is on life support, being kept alive by machines.

Now, we are told that the primary concern of the administration is two-fold. First, the potential of violence erupting in the region. And second, that possible power vacuum of having such a powerful symbol, the absence of such a powerful symbol in the near future.

Now, what is happening so far is that this, of course, has brought to the spotlight once again, the Middle East peace process, the importance of all of it. Recently, the Bush administration has come under some criticism for not being engaged enough. It was just yesterday that President Bush addressed that criticism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: I think it is very important for our friends, the Israelis, to have a peaceful Palestinian state living on their border. It is very important for the Palestinian people to have a peaceful, hopeful future. That's why I articulated a two-state vision in that Rose Garden speech. I meant it when I said it. And I mean it now.

(END VIDEO CLIP)

MALVEAUX: Now, of course, it's no secret that the Bush administration has not been dealing with Yasser Arafat for at least the last couple of years. It was just last year at a press conference, that President Bush met with Jordan's King Abdullah, saying that he felt that he was an impediment to the peace process.

That he was sabotaging it for actually not cracking down on Palestinian militant groups. This, of course, the Bush administration maintains that perhaps there is an opportunity there waiting for Palestinians to see what kind of leadership will emerge.

Now, President Bush is spending a long weekend at Camp David. That is where we are told that he is going to look over some of the changes among his staff, cabinet members for a second term -- Daryn.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

SANCHEZ: All right. Let's look at the situation in Iraq now. At least six members of the coalition forces lost their lives in Iraq. In the past 24 hours, two Marines with the First Expeditionary Force were killed in fighting yesterday. This is in western Iraq. Four others were wounded, we understand.

North of Baghdad, a soldier with the First Infantry was killed by a roadside bomb. Officials say it happened as a military convoy passed right through the town of Balad late last night.

And now, south of Baghdad, three British troops with the 850 Black Watch Regiment were killed yesterday by a suicide bomber at a checkpoint. British officials say a civilian translator also died in that attack.

KAGAN: Elsewhere in the Middle East, the fight for Iraq appears ready to erupt on a new front. U.S. forces are outside the insurgent stronghold of Falluja, apparently mobilizing for an all-out offensive on the city.

Our Karl Penhaul is embedded with the Marines near Falluja.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey Doc, make sure you hang out behind me a little bit so I can give you some cover. KARL PENHAUL, CNN CORRESPONDENT (voice-over): Getting ready to storm out of the desert and into an urban jungle. An assault on Falluja promises to be a close quarters, street fight. Marine infantrymen and tanks will have to work in harmony against rebel fighters in buildings and hidden allies.

SGT. MICHAEL CHAMBERS, U.S. MARINE CORPS.: That's what's kind of scary. You're rolling right by, thinking it is secured. And then they pop off that rooftop behind you and then here comes an RPG.

PENHAUL: Remote controlled explosives and suicide car bombs are likely to be major threats.

(on camera): The history books recall how some of the world's most powerful armies became bogged down in urban, guerrilla warfare, Hue City, Vietnam, Mogadishu, Somalia, Grozny, Chechnya.

CAPT. TOM TENNENT, U.S. MARINE CORPS.: Urban warfare is a dirty business. The defender initially has the advantage because he knows the terrain much better than the attacker. If the defender is able to use a defense to his advantage, the attacker will be slowed and have to reorient his offense.

PENHAUL (voice-over): When the Marines roll in, insurgent gunmen could be lurking in any window or doorway. Armored vehicles and tanks will become magnets for attacks.

SGT. JOSE DUCASSE, U.S. MARINE CORPS.: We're going to be looking for RPG fire from the rooftops and intersections and stuff like that. Make sure we don't hit any tank mine.

UNIDENTIFIED MALE: Charge three!

PENHAUL: Mortar crews run through drills.

UNIDENTIFIED MALE: Elevation!

UNIDENTIFIED MALE: Elevation.

PENHAUL: Inside the city they could, if needed, lob chargers over buildings or onto rooftops to destroy concealed insurgent positions. This explosives team is measuring out detonation cord. Depending on how they tie the knots, they could blow out doors and race in to clear, potential insurgent hideouts.

Intelligence suggests that Falluja's defenders may have rigged buildings with homemade bombs.

LNC. CPL. WILLIAM SABIN, U.S. MARINE CORPS.: Will it cause us to maybe slow down our attack a little bit, because we have to take into account all these kind of obstacles as far as booby-traps? Yes. But will it cause us not to be able to complete the mission? Absolutely not.

PENHAUL: U.S. commanders say the keys to victory in Falluja are moving fast, and coordinating their weapons on the ground and in the air. A battlefield where Marine and machine works as one.

Karl Penhaul, CNN, near Falluja.

(END VIDEOTAPE)

SANCHEZ: Yes. We should point out, we don't know exactly when this offensive will take place. We here at CNN will be monitoring it. We'll report a take you there with Karl Penhaul when we can.

KAGAN: Yes. Meanwhile, there are a lot of things that are difficult to do in the dark. And one National Guard fighter pilot found out the hard way.

SANCHEZ: Still to come, talk about missing the mark. How a school gets caught in the line of fire during a nighttime practice mission.

KAGAN: Plus, three days of deliberations, the jury remains busy and so is the judge. We'll have the latest in the Scott Peterson trial.

SANCHEZ: And Early gifts this season. No, that's not Santa and he sure isn't spreading any holiday cheer.

We'll explain these stories and more when CNN live rolls your way.

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SANCHEZ: Welcome back to CNN LIVE TODAY. I'm Rick Sanchez.

At the top of the hour, jurors are to begin their third day of deliberations in the Scott Peterson murder trial. Both the defense and the prosecution joined forces for one argument that will ultimately, they say, win. There will be no live video of the coverage. It is what the jury -- or pardon me, the judge has ruled.

CNN's Ted Rowland has the very latest from Redwood City, California.

(BEGIN VIDEOTAPE)

TED ROWLAND, CNN CORRESPONDENT (voice-over): The jury of six men and six women, deliberating now for a day and a half, is deciding the fate of Scott Peterson in sequestration; away from their homes and families until they can reach a verdict.

In closing arguments lead prosecutor Rick Distaso told the jury that the case is like a puzzle. And when all the circumstantial evidence is pieced together, the picture is very clear, that Scott Peterson planned and carried out the murder of his pregnant wife. Distaso told the jury that the fact that the remains of both Laci Peterson and her unborn son were found in the same place that Scott Peterson was fishing, was evidence enough to convict him of first- degree murder. Defense attorney Mark Geragos in his close told the jury that prosecutors didn't prove anything, except that Scott Peterson is a liar. Despite defense objections, Judge Al Delucchi instructed the jury to also consider second-degree murder, which because there are two victims, would most likely carry a sentence of 30 years to life.

JUDGE ALFRED DELUCCHI, SAN MATEO COUNTY: Murder in the second degree is the unlawful killing of a human being with malice aforethought, when the perpetrator intended unlawfully to kill a human being, but the evidence is insufficient to prove premeditation and deliberation.

ROWLAND: Judge Delucchi denied a media request for a camera in the courtroom for the verdict, saying that emotions are running very high. And he did not want to be part of broadcasting any sort of, quote, "family meltdown."

(on camera): While there is no indication of how long jurors will take, the judge in the case has indicated he believes they'll be out at least a week. Late in the day, we did learn that the jury did request to see some evidence, specifically photographs. We also know that the foreman in this case is Juror No. 5, who has a law degree and a degree in medicine.

Ted Rowlands, CNN, Redwood City, California.

(END VIDEOTAPE)

KAGAN: And now a look at other "Legal Briefs."

A California judge has dealt setback to Michael Jackson in the child molestation case against him. A judge yesterday rejected a defense request to remove the lead prosecutor from the case. Jackson's attorney says that District Attorney Tom Sneddon is motivated by a personal vendetta against the singer. The judge says there's no conflict that would require Sneddon's removal.

Opening statements are to begin next hour in the sexual assault trial of former NBA star Calvin Murphy. The Hall of Fame basketball player and television commentator is accused of molesting five of his daughters when they were children between the ages of 1988 and '91. The former Houston Rockets star says he's the victim of a family dispute over money.

SANCHEZ: You know, oftentimes, adults harp on some of the negative actions of a lot kids, teenagers, for example. We've got a story about some youngsters that's sure to warm your hearts.

KAGAN: Still to come, one popular high school football player helps turn the limelight on one of his classmates.

SANCHEZ: First though, Gerri Willis with some tips to help you start your own business.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, guys. Are you tired of your bosses and corporate culture? We'll tell you the best way to buy a business when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

SANCHEZ: We had told you that we would be taking you to Falluja to get the very latest on the situation there. Our Karl Penhaul has gotten an opportunity to join us now. He's there on the scene.

Karl, what can you share with us at this point?

PENHAUL: Well, Rick, every day that we've been here one must say that the preparations have been increasing. The U.S. Marines have been ratcheting up those preparations when the order to stage an all- out assault on the rebel-held city of Falluja comes through. I say when, because all the U.S. Marine commanders here are talking of when. Nobody is talking of if.

Now, in the course of the day, we've seen Iraqi soldiers from the new Iraqi army arriving on a camp in the desert near Falluja. They've been training alongside U.S. Marines because large elements of the new Iraqi army will be fighting in Falluja alongside the Marines.

We've also been hearing a little bit more from intelligence sources, from military intelligence sources, about the type of threat that Falluja poses. Now, obviously this will be an urban warfare scenario. And so, what the military and intelligence experts are saying is that the biggest threat will come from improvised explosive devices. Those could be roadside bombs buried under pavements, buried into walls. The military is expecting car bombs. They're expecting suicide car bombs.

They even believe that some of the buildings inside Falluja may be completely rigged with explosives. And that will present very grave dangers for the U.S. forces as they push in. It is really difficult terrain, to fight in an urban area. In fact, what the Marines are saying is this is going to be their biggest battle and the biggest urban battle since Hue City. That was during the Tet Offensive in Vietnam in 1968 -- Rick.

SANCHEZ: Could you, Karl, and I know we have to be very sensitive to what the military is doing there, but could you give us a general sense of what this insurgency is in that specific area?

PENHAUL: According to U.S. military intelligence sources, latest information suggests possibly 3,000 hard-core insurgents fighters are holed up in Falluja. When the military says hard-core insurgent fighters, those are expected to be the men that stand and fight, fight it out against the U.S. Marines.

They also suspect, though, that there are other members of the civilian population inside of Falluja who do carry arms, and could join the insurgents. When however, they see the speed and ferocity of the Marine attack, then they expect some of those civilians simply lay down their weapons. They expect that the real hard-core fight will come with a group of around 3,000 fighters. I have seen estimates since we've been here, though, suggesting that up to 5,000 insurgent fighters could be holed up in Falluja. Also if you wreck that they've had probably six months now to prepare defenses in the city. Because the last time the Marines tried and offensive on Falluja, that was in April and May, a number of political wranglings and fear of mounting civilian casualties called a truce to that offensive. And eventually the Marines had to pull out -- Rick.

SANCHEZ: This really does sound, just from your own characterization and those that we've seen here and followed monitored at CNN, like it's going to be very different from what we've seen before in Iraq. You are in a unique position with these soldiers. Can you give us a sense of the mood among our troops there as they go into this situation?

PENHAUL: We've seen the mood here fluctuate. Fluctuate because on the one hand there's a lot of young men here, young men who are keen to do their jobs. They all have got very different reasons for being in the Marines, patriotism; the wish to serve their country may indeed be one of those motives.

Above all, here on the ground when they go into this kind of fight, they'll be looking out for one another. And within the platoon, within the companies, this is a very close-knit band of brothers. And they're keen to get this job done and get it done right.

We've also seen some of those spirits dropping because last weekend, eight Marines were killed in a suicide car bomb attack. And in the course of the week, we saw a very moving memorial service for those men. Obviously, these young men when they see that kind of memorial service, when they see their buddies dying, it does bring them face to face with their own mortality.

And possibly for the first time in their life, they do realize that they are not invincible. They realize and their commanders realize that their fight for Falluja could come with some certainly very high casualties -- Rick.

SANCHEZ: We've also been hearing that some of them have been itching to do this for quite some time. Do you sense in them a sense of urgency, almost as if they've been fighting to get this done?

PENHAUL: A sense of urgency I would agree with, because they know these Marines know that the fight for Falluja is a key fight. Many of these Marines may not fully understand the political ins and outs of Iraq. What they do understand and what they're been thoroughly briefed on is that if the problems in Falluja can be solved; if the resistance for Falluja can be crushed, then that will level the playing field. And could, if all goes well, open the gates towards January elections for all Iraqis.

And so, these Marines are very conscious of that. But they also don't like hanging around too long. They feel that they're ready to go. They don't want to be sitting back here in anticipation. The moment they believe is coming. They want to get the job on. And in the words of one of the commanders, what he was saying to us is that a lot of these Marines are going to be drinking Red Bull, that caffeine laced drink so that they can fight for days at a time. He said, "We're going to drink Red Bull. We're going to fight for days at a time." And in his words, "We're going to kick the insurgents' ass."

And so, there's a keen spirit here that they want to get that fight on -- Rick.

SANCHEZ: It's very direct quote there. Karl, before we let you go, give us, if you would, because we know this is the first of many reports that you may be filing in the days to come, what your role is going to be as an embed with these troops.

PENHAUL: Essentially, as with some of the other embeds what the military has said to us is that you're welcome to come along. There are no more or no fewer guarantees for us than there are for the Marines and the rest of the military. In many senses, the Marines will let us get as far forward as we feel comfortable with. And they seem to be quite happy to put us at what they're assuming at the tip of the spear. They will allow us to see the action as it unfolds.

They're also very well aware that this is an unpredictable urban type scenario and we could be out there filming all sorts of scenarios as they unfold -- Rick.

SANCHEZ: Karl Penhaul, stay safe my friend.

And we'll certainly be getting back to Karl Penhaul in what seems to be, at this point, an offensive in Falluja, that most are quoting as a situation where it is not a matter of if, but when.

KAGAN: But when.

We're also tracking what's happening out of Paris with Yasser Arafat and the situation there.

And we're following the markets. Much more business news and other things ahead. Stay with us.

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